GMs predicted death

We know the why

We do not yet know exactly the how and when

It is very interesting to watch and see what will be the trigger to the very end

Also to see how it will happen

It is very interesting to see the former arrogance slowly changing and knowing it is already too late and every measure taken is wrong and futile

It is like watching a bullfight and the bull is running around wild with anger and can no longer make any revolutionary moves to save it self

It can move around looking for targets to hit but gets ever weaker

The once mighty bull is no longer very powerful nor seeing clearly

The big question is if the remains will be used or just thrown away after the public leaves

Unfortunately the public has already started leav> From: "Gosi"

The very same things were said of IBM.

Compared to what IBM was it is pretty dead now

IBM has sold off most of its factories and changed into a service company

I do not see GM being able to do anything like that

Nobody wants to buy their factories

GM has already sold its finance and service arm

There is not much for GM left than let us who are interested in the lifes of companies watch how and when it will die

Mike Marlow wrote:

I have to agree with Gosi's later post. IBM is but a shadow of its previous embodiment..

They were very similar to GM in arrogance and philosophy, and while they didnt disappear, they have certainly been humbled with reference to their earlier position

You are working too hard to justify a distinction that does not exist. The fact of the matter is that IBM was very much like GM in their corporate philosophy and along came David with sling shot. IBM was dealt a humbling blow and had to reinvent itself into something that was a combination of their former self and a new, in demand self. That owes to the fact that they had outlived their reign as king of the mountain, and if they were to survive, they had to embrace the new demands of the computer world instead of continuing to define what those demands would be. That is indeed, very similar to where GM is today.

Maybe, and maybe not. It all depends on whether the right management gets in there. Your ability to see whether they turn around or not has nothing to do with GM's ability to do so. I will agree if you say that they still have not demonstrated enough awareness of the changes they have to make, but that is far from a shovel of dirt on their casket.

Nobody wanted to buy IBM's or Carrier's or..., or..., or...

So? You are looking at this with too short sighted an eye.

I can see you don't find yourself often accused of optimism.

I disagree. IBM is a very successful leader in the industry. They are not what they were at one time, but the world has changed and no company is what IBM was. They realized the world was changing (later than they should have), they embraced the change and emerged as one of the most formidable leaders in that industry today. What does it matter that they are not the same company that they were 40 years ago? Isn't that exactly the point?

So? Isn't *that* the point? Those companies that realize the world is changing around them survive. No matter that they aren't a mirror image of what they were. The changing world demands that they don't remain the same. Somehow this thread and the thoughts about GM have gone the direction of a changed GM is somehow a lesser good. Bull. A changed GM is a mandate and a good thing. The world is past the days of "what's good for GM is good for America". So they get humbled. Isn't that what everyone is saying that want?

Basicaly, we agree, Mike... Some industries have to make drastic changes to stay alive. GM may be at that point, as IBM was.

AT&T was. They got their cashews crumbled too, but they survived.

I doubt that anyone wants to see GM disappear from the face of the earth. I certainly dont.

IBM made the necessary changes, but GM is still waffling.

IBM is different, they don't control their area of business, but their business and stock performance is excellent.

Irrelevant. Read the original comment I was responding to with this comment. As well, read the subsequent posts.

The IBM story is very much like the GM story of today. At the time IBM did indeed control their area of business.

My parallel comparison would be with PanAm (Pan American Airlines) Back in the 50s and 60s PanAm ruled the skies of the world with the 707. They got huge and then gambled mightily on the 747 to expand their dominance. To survive for their last 2 decades they had to sell off valuable assets just to stay alive. They sold the reall estate (PanAm building, Intercontinental Hotels) Asian routes, key European routes etc...

Once all of the valuable stuff was gone they could not stay in business. The rest is history.

Is GM going down that path ? Sell off what is valuable to bring in the most money and cutting off your own legs slowly ?

Intercontinental

Perhaps they are. Time will tell. My point is not that they are doing all the right things, but that their situation is very survivable, in contrast to the "GM is dead and doesn't know it" mentality of some here. The future of GM lies in the senior management of the company. I have no confidence in that senior management at present, but that can be changed. We'll just have to see...

Mike and Everyone,

Take a look at this article from this week's Autoextremist:

G.M. is doing something they should have done 10 years ago, finally reversing the Roger Smith "homogination" process from the late 70s~ early 80s. About bloody time.

Mike, I think you (and I'll plead guilty to it too) have underestimated Rick Wagoner. Yeh, he's not a "car guy" in the mold of Ed Cole, Bill Mitchell or John DeLorean, but for a bean counter he has come a long way.

G.M. is far from dead - maybe a little bit "Rip Van Winkle", but I think he (meaning G.M.) has awakened from its slumber.

Regards, Bill Bowen Sacramento, CA

This is good to see. Let's hope GM really does release the reigns somewhat and let's the divisions really stretch their wings. This could be interesting.

I made a good profit selling Pan Am short in the early 80s.

I don't believe this will be the death of GM, but they will get smaller, concentrating on areas of business such as full sized sedans where they are not so vulnerable to a bitch slapping by Toyota and Honda.

Their woes are the fault of the engineers.